UK ‘top hatting’ move for Cristal-chasing Tronox
By Grimsby Telegraph | Posted: 27 Nov 2018
Global chemical giant Tronox looks set to become a UK-registered company next year, as it continues its protracted buy-out of Cristal.
The US-headquartered Australian-incorporated business will seek the consent of shareholders to create a new holding company under English law.
Tronox already has an office in London, and the Stallingborough titanium dioxide plant at the centre of the £1.27 billion deal is the largest of its type in Europe, and only British facility owned by either company.
A vote is anticipated in the first quarter of 2019 on the procedure, known as ‘top hatting’.
The company said it would align the jurisdiction with “its peers and the majority of other non-US companies listed on the New York Stock Exchange, while providing the ability to “create an organisational and legal structure that more efficiently manages a global business”.
It will formally initiate the process to create Tronox Holdings Plc in the coming weeks. Each Tronox shareholder will receive one share in the newly incorporated company in exchange for each share held in the Australian-incorporated Tronox Limited.
Exxaro Resources Ltd, the largest shareholder with a 26 per cent stake, has agreed to the move, with Tronox to accelerate a buy-back following the issue on the 2012 purchase of the South African company’s mineral operations.
Tronox is working on a US processing site sale to pacify objections from the US Federal Trade Commission over anti-competition concerns.